Following the sudden death of Bp. John Martin on September 30, 1984, the administrator of the diocese, mitred priest Fr. Peter E. Molchany, and the diocesan board of trustees convened a Special Council-Sobor to nominate a candidate for ruling bishop of the diocese. At the Special Council, held on November 26, 1984, Bp. Nicholas of the Ukrainian Orthodox Church of America was nominated as their candidate to be the bishop of the diocese. After receiving his candidacy, the Holy Synod of the Ecumenical Patriarchate elected Bp. Nicholas as Ruling Bishop of ACROD on March 20, 1985.

During his episcopacy, Metr. Nicholas has been active in relationships with other Orthodox jurisdictions and in particular with the brethren in the Church of the Czech Lands and Slovakia, the homelands of many Carpatho-Russians in the United States. He has revamped the diocesan seminary, encouraged starting new parishes and publication of services books containing music in Carpatho-Russian plain chant.